Short-Term Rentals Ad Hoc Committee

Regular Meeting

Columbia, SC · December 14, 2022

Minutes

COLUMBIA SHORT-TERM RENTALS AD HOC COMMITTEE MEETING MINUTES WEDNESDAY, DECEMBER 14, 2022 CALL TO ORDER The Columbia Short-Term Rentals Ad Hoc Committee conducted a meeting on Wednesday, December 14, 2022 at 4:03 p.m. at City Hall (Council Chambers) 1737 Main Street, Columbia, South Carolina. Attendee Name Title Status Will Brennan Member Present Howard E. Duvall Member Present Tina N. Herbert Member Present OVERVIEW OF DRAFT ORDINANCE 1. Proposed Short-Term Rental Ordinance - Mr. James Knox, Esq., Senior Assistant City Attorney Councilor Duvall said I want to thank the neighborhoods and the short-term rental industry for their input over the last few months. We have been working on this for a year now and I think we have come up with something that is ready for prime time. It will be tweaked as it goes through the rest of the Council. It is a good ordinance and our attorney James Knox is going to explain where we are. Mr. James Knox, Senior Assistant City Attorney said draft 12.7.22 is the most recent version. Section 5-400 makes it clear that this ordinance only applies to short-term rentals (STR) that are occupied for less than 30-days. This ordinances does not apply to hotels, motels, bed and breakfasts, or inns. It does not apply to rentals that are rented for 30-days or more. Sec. 5-401 covers definitions. Owner-occupied is defined as a dwelling unit that is lawfully classified as owner-occupied by the county and receiving the 4% special assessment ratio. Sec. 5-402 covers the regulations we have imposed on short-terms rentals. Subsection a - an advertisement of an STR is sufficient enough to determine that it is being offered as an STR. Subsection b provides that a business license is required to operate an STR in the city. Subsection c (code compliance requirements) says that if you are going to operate an STR you have to comply with any all ordinances at all times. It emphasizes the big six. Councilor Duvall stated that representatives from the STR industry wanted this ordinance to closely parallel the rental ordinance we passed five years ago. Page 1 of 8 COLUMBIA SHORT-TERM RENTALS AD HOC COMMITTEE MEETING MINUTES WEDNESDAY, DECEMBER 14, 2022 Mr. James Knox, Senior Assistant City Attorney explained that subsection d is the general liability insurance requirement. In order to operate an STR in the city, you must maintain a policy limit of at least one million dollars per occurrence. Subsection e (safety inspection) says if the city deemed necessary, the city can inspect a STR provided they give the owner or the local representative of an owner 24-hours’ notice. Subsection f imposes certain record keeping requirements on the owner including the name and phone number of each guest that booked a short-term rental for the previous two years. Subsection g requires the property owner or his designee to take phone calls at any given time with any issues that may arise at the STR. Subsection h provides that permits are non-transferrable. In the event somebody sells an STR property and the new owner wants to operate it as a STR, they will have to get a new permit. 5- 402 (i) says the minimum guest age would be 21 for the person making the booking. 5-402 (j) says the minimum stay duration is at least one night. 5-402 (k) requires the permit number that is issued by the city to be included in the online advertisement. 5-402 (l) is a requirement for certain information to be provided to the guest who stays at a short-term rental. 5-402 (m) imposes the parking space requirements, which is one space for every two bedrooms not to exceed six vehicles. In 5-402 (n), the maximum occupancy limit is two persons per bedroom plus an additional two people per dwelling unit. 5-402 (o) requires the owner or local representative to determine that the guest who booked the STR is in fact staying there. 5-402 (p) the owner or local representative would have to notify all households in a 200’ radius of the STR that the property is being used as a STR and provided the contact information. Councilor Herbert sought clarification on the intent of 5-402 (g). What if the owner is not local? Councilor Duvall explained that the owner must have a local representative within 45 miles of the STR, if the owner is not local. Councilor Brennan inquired about 5-402 (d). What type of increase in insurance will be realized by a STR owner versus an owner-occupied unit? What level of expense are we talking about? Councilor Duvall said all of the STR owners we have worked with said that one million dollars is the minimum for them. Councilor Brennan asked if an owner-occupied unit rents out for the weekend, is that most likely covered under their home insurance. Councilor Duvall said yes. Page 2 of 8 COLUMBIA SHORT-TERM RENTALS AD HOC COMMITTEE MEETING MINUTES WEDNESDAY, DECEMBER 14, 2022 Mr. James Knox, Senior Assistant City Attorney reviewed section 5-403, which clarifies that in order to operate a STR in the city, the owner or local representative will need a permit from the city. The permit cycle is in 5-403(b). Renewals must be done by July 1 of each year. If you do not renew by July 31, that will result in the loss of the permit. All of the stakeholders agreed to add a clause to 5-403(a) that makes it clear that one permit is specific to one STR unit or address. You cannot use one permit to operate multiple STRs. 5-404 talks about the permit application and the associated fee. 5-404(a) provides that the city would have to provide a form to applicants and the minimum information that is required can be found in subsections one through eight. 5- 404(b) provides the associated permit fees which are required to be paid at the time of application. Councilor Herbert asked if a one-time late fee is assessed. Mr. James Knox, Senior Assistant City Attorney clarified that it is a one-time late fee; six months after July 1 you would have to apply for a new permit. You would no longer be eligible to renew your existing permit. Come July 31, you have lost your permit. This is outlined in 5-403 (b). 5-405 provides criteria for issuing a permit. If an applicant meets those four elements in 5- 405(a), the city has to approve and issue a permit within 30-days from application submission. 5- 406 imposes a permit cap for non-owner occupied STRs located in a residential district. This will be determined after 90 days from the passage of this ordinance by looking at the number of permits issued for non-owner occupied STRs in a residential district. That number would be the cap. On day 91, additional applications for non-owner occupied STRs will be placed on a waiting list at no cost. As a permit becomes available, the city will notify the applicant of the opening and the person would have 10-days to apply. If they do not apply within 10 days or if the application is denied, the permit will go to the next person on the list. 5-407 says if someone possesses an STR permit and decides they want to rent the property out for more than 30-days, they would not have to get an additional permit under our existing rental regulation ordinance. Councilor Duvall said if you have a STR permit, you are permitted to rent for a period longer than 30-days. If you have a regular permit, you are not permitted to rent for less than 30 days. Mr. James Knox, Senior Assistant City Attorney added unless you get a short-term rental permit. 5-408 is the violations section. It is essentially the same violations we have for the existing rental ordinance. If the owner, local rep or any guests violate the city ordinance, that will constitute a violation for the purpose of this ordinance. Providing false or inaccurate information about a dwelling unit or short-term rental would constitute a violation. Failure to have a valid STR permit and operating a STR would also constitute a violation. 5-408(b) creates a point scale for violations, which is the same as our existing rental ordinance. 5-408(c) outlines the monetary Page 3 of 8 COLUMBIA SHORT-TERM RENTALS AD HOC COMMITTEE MEETING MINUTES WEDNESDAY, DECEMBER 14, 2022 penalties for violations. Once a permit accumulates 10 or more points, it will be subject to revocation proceedings, which are the same proceedings for our existing permit. 5-409 clarifies that if someone is subject to revocation, they have a six month waiting period before they can apply for a permit specific to the dwelling unit for which the revocation occurred. If someone has a permit revoked more than once for a dwelling unit, they are no longer eligible to apply for a STR permit for that unit. Councilor Duvall said we will address the STR industry’s request to provide additional permits under certain conditions. I plan to ask City Council to establish a committee to look at the data we will be gathering after the first 90-days. We will look at establishing a special exception that will go to the Board of Zoning Appeals for certain specified qualities. I want the committee to look at a procedure that involve the neighborhoods, the Board of Zoning Appeals and the STR industry. This committee will be established by resolution. Councilor Brennan asked David Hatcher if there is a path forward to efficiently and effectively enforce what is being put into place and the added workforce to keep up with this. Mr. David Hatcher, Housing Official said it will be a similar process to what we have in place with the rental ordinance. We will need two additional staff to maintain this and keep up with the points and fees. Councilor Herbert asked David how long it is taking to approve our current permits. Mr. David Hatcher, Housing Official said we generally turn them around in a few days. Councilor Duvall said this is setup so that the first permit will last until July 1, 2024. It will be renewed on July 1 but the long-term permit is due January 1. It will help with the workload. We have representatives from STRs and the neighborhoods. I would like to ask Kit Smith to give us her opinion on where we are. Ms. Kit Smith said I don’t represent a formal group. We have been an informal group of neighborhoods throughout the city and mostly effected by STRs. I want to complement the STR group we have been working with. We’ve had good and meaningful discussions. We have come a long way with understanding one another’s concerns and trying to reach a middle ground. I think this is a good one for Columbia. Most other cities in South Carolina are being most restrictive on the location in the neighborhoods. We are working with existing and future STRs to accommodate them. We are still concerned about what goes on in the neighborhoods. Is this going in the zoning ordinance? Page 4 of 8 COLUMBIA SHORT-TERM RENTALS AD HOC COMMITTEE MEETING MINUTES WEDNESDAY, DECEMBER 14, 2022 Councilor Duvall said no. It will be an ordinance standing alone from the zoning ordinance. Ms. Kit Smith said I think the zoning ordinance will have to change. The rate of growth in Columbia has been substantial. Since we started this discussion, we had less than 200 and now we are closer to 1,000. It is growing by 18% per quarter. The quicker we can get this in place and find out exactly what is out there and how we can move forward together will give us great reassurance. We would like to get a copy of the checklist that goes with long-term rentals. Is a warning the same thing as a citation? If there is a big problem, you should not get a warning the first time around. Councilor Herbert said certain things like shootings and guns would not be given a warning. That is a major offence. David, would shooting from a rental unit be five points or ten points? Mr. David Hatcher, Housing Official said it is an automatic ten points for a serious violation. Ms. Kit Smith said we are concerned about the permit situation. We had a good conversation with the STR industry. We agreed that there would be a finite cap that can stay until you change your mind. If the cap is not put in a specific geographic area, we will end up with all of them. We want guardrails around the location of the permits, perhaps within a mile of the existing permit. It takes the citizens to enforce this. We have to report things but we would also like to have a 24- hour phone number to call. Councilor Herbert said I want to follow-up on the cap and making sure that one or two neighborhoods don’t get all of the short-term rentals. Is the thought that the committee will assess the numbers once we get the data? Councilor Duvall said that will be in the purview of the committee that will be formed. Ms. Kit Smith said under this ordinance, permits can transfer. They can come in our neighborhood when a permit becomes available. Councilor Herbert said we need to see where the concentration is. We don’t have the data to make the decision. Ms. Kit Smith said current data shows that more than 50% of them are in 29201 and 29205. Page 5 of 8 COLUMBIA SHORT-TERM RENTALS AD HOC COMMITTEE MEETING MINUTES WEDNESDAY, DECEMBER 14, 2022 Councilor Herbert said after 90 days, we will have a good sense of where everything is. I am assuming that people won’t be turning permits in during the 90 days. Ms. Kit Smith said that is well taken. Let me thank Mr. Duvall. He has been patient with me and our group. I respect the STR industry. Thank you again for all of your good work. Mr. David Bergman said anybody getting a permit with the 90 days, will have it for a year. You will have 12 months for analysis and before anybody gives up their permit. I would offer my economic and data analysis experience. I also know short-term rentals. I am not a formal representative but I am trying my best to represent the views of other hosts in the area. I hope we can see the data on code enforcement for short-term rentals. I predict that we will see fewer violations for short-term rentals. Short-term rentals have increased and the demand for alternate accommodations has grown during COVID. As we get the data, I look forward to reexamining everything we have done. I hope this is something we continue to work through. The draft has come a long way. We have given a lot of feedback in the meetings. We lowered the permit fee, simplified the language, and removed requirements that were not enforceable. We still have a few concerns. A cap is better than a ban, but we prefer to have the free market to decide on the optimal level. A cap tends to limit economic activity and travel to the city. It will also open the city up to potential litigation. I recommend a full legal review of that. Councilor Herbert clarified that this is a temporary cap while we go through the data. Councilor Duvall said it is a permanent cap until it is changed by a vote of Council. Mr. David Bergman said I worry about the 80% of hosts who are managing a single room or rental property. Is a business license too much? Perhaps if a certain number of properties are managed, a business license should be required. Councilor Brennan agreed to look at that. Councilor Herbert said you are required to have a business license if you operate a home-based business. Mr. David Bergman said it may be helpful to have a flyer outlining the process. I am concerned about neighbor notification. It seems like 200 feet is a high bar to meet. That could be an entire apartment building. Perhaps we should remove the distance and use something more straightly forward that won’t result in a lot of notifications in highly dense areas. Page 6 of 8 COLUMBIA SHORT-TERM RENTALS AD HOC COMMITTEE MEETING MINUTES WEDNESDAY, DECEMBER 14, 2022 Councilor Duvall asked if he meant contiguous neighbors. Mr. David Bergman said that is my alternative because it could be impractical to address everybody within a 200’ radius. A lot of hosts have guests who are 18 and that may be a better start. Can the points and violations be consistent for long-term and short-term rentals? Councilor Herbert said the guest making or booking the reservation should be at least 21. Is there a connection between the person making the reservation and the person that stays? Sometimes, other people make reservations for me. I don’t know how we will enforce that either. Mr. David Bergman said the committee should consider allowing owners to transfer a permit between properties. If my permit is revoked at one property, I should not be prevented from applying for a permit at another location. Councilor Duvall said the ordinance states that the city will not issue an STR permit for a dwelling unit that has been subject to a permit revocation more than once. We will look at that but I think it does what you are talking about. Mr. David Bergman said in other municipalities they have challenges with enforcing permits and making sure that a black market is not being created because permits are no longer obtainable after 90-days. We need to have a plan. We want everyone to compete on a level playing field. Councilor Brennan asked if the short-term rental industry has a working group. It would be great to have your help with looking out for things like that moving forward. Mr. David Bergman said we do not have an official group but a lot of people in the group want to be a part of everything going on. You can’t go out to Airbnb and find the location of a problem rental unless you go through a third-party service to obtain the data. Councilor Duvall said we do plan to get a third-party administrator to help us with this. As Ms. Smith said, it is going to be up to us and you all to enforce this and make sure there are no black market STRs out there. Requiring permitted STRs to include their permit number in advertisements, will help us pick out the ones that are not permitted. Councilor Herbert asked Mr. Knox to include a penalty in the ordinance for people who are intentionally operating without a license. Page 7 of 8 COLUMBIA SHORT-TERM RENTALS AD HOC COMMITTEE MEETING MINUTES WEDNESDAY, DECEMBER 14, 2022 Mr. James Knox, Senior Assistant City Attorney said Section 5-408 has a provision dealing with the operation of a STR without a permit. It constitutes a violation. I am hearing that you want an intent requirement. Councilor Herbert said it will be a different statement if they were found intentionally operating after being given some level of notice. COMMITTEE DISCUSSION AND NEXT STEPS Councilor Brennan said I would like to thank everybody who participated in this process. I think we brought it far enough along that warrants going to full Council. Upon a motion made by Mr. Brennan and seconded by Ms. Herbert, the Committee voted unanimously to schedule a work session to update the full Council and receive any comments, feedback or edits. After that, there will be readings in general City Council and opportunities for public input. ADJOURNMENT The meeting was adjourned at 5:04 p.m. Respectfully submitted: Erika D. Moore Hammond, CMC City Clerk Page 8 of 8

Agenda

Packet

COLUMBIA SHORT-TERM RENTALS AD HOC COMMITTEE MEETING AGENDA WEDNESDAY, DECEMBER 14, 2022 The Columbia Short-Term Rentals Ad Hoc Committee will conduct a meeting on Wednesday, December 14, 2022 at 4:00 p.m. at City Hall (Council Chambers), 1737 Main Street, Columbia, South Carolina. You may view the meeting online at www.columbiasc.gov. For questions regarding the meeting, please contact the City Clerk’s Office at (803)545-3045 or cityclerk@columbiasc.gov. The Honorable Howard E. Duvall, Jr., At-Large The Honorable William Brennan, District III  The Honorable Tina N. Herbert, District I Prior to entering the meeting please turn all electronic communication devices to the silent, vibrate or off position. All presenters are asked to speak directly into the microphone for recording purposes. CALL TO ORDER OVERVIEW OF DRAFT ORDINANCE 1. Proposed Short-Term Rental Ordinance - Mr. James Knox, Esq., Senior Assistant City Attorney COMMITTEE DISCUSSION AND NEXT STEPS ADJOURNMENT Page 1 of 1 1 MEETING DATE: December 14, 2022 DEPARTMENT: City Clerk FROM: Erika Hammond, City Clerk SUBJECT: Proposed Short-Term Rental Ordinance - Mr. James Knox, Esq., Senior Assistant City Attorney FUNDING SOURCE & ORIGINAL BUDGET: ATTACHMENTS:  COC STR 12.7.22 (PDF) Updated: 12/9/2022 3:03 PM Page 1 Packet Pg. 2 1.a Draft 12.7.22 SECTION 1. The Code of Ordinances, City of Columbia, South Carolina, is hereby amended by adding Article IX to Chapter 5 to read as follows: ARTICLE IX. SHORT TERM RENTALS Sec. 5-400. Scope of Article. Attachment: COC STR 12.7.22 (8148 : Proposed Short-Term Rental Ordinance) Unless otherwise specified, the requirements and provisions of this Article shall apply to owner- occupied and non-owner-occupied short-term rentals (collectively called "short-term rentals”) made available to occupants for periods of less than 30 consecutive days in the municipal limits of the City. This Article does not apply to hotels, motels, bed and breakfast establishments, or inns that are subject to and compliant with the City's business license and other applicable Code requirements. Unless otherwise specified, this Article does not apply to rentals that are rented for a period of 30 days or greater and that are subject to the City's rental housing regulations found in Chapter 5, Article VIII of the Code. Sec. 5-401. Definitions. Unless otherwise expressly stated, the following terms shall, for the purposes of this Article, have the meanings shown in this section. Where terms are not defined, through the methods authorized by this section or Code, such terms shall have ordinarily accepted meaning such as the context implies. Dwelling unit means any structure or portion of a structure arranged or designed to provide independent living facilities for living, sleeping, and personal hygiene and that may legally be used for habitation by humans. Guest means any person who occupies a short-term rental. Owner-occupied means a dwelling unit that is lawfully classified as owner-occupied by Richland County and is receiving the 4% special assessment ratio. Non-owner-occupied means a dwelling unit that is not owner-occupied and is used and/or advertised for rent for transient occupancy by guests. Residential district means residential base zoning district as defined by Section 17-3.2 of the Unified Development Ordinance Responsible local representative means a person having his or her place of residence or business office within 45 miles of the short-term rental property and designated by the property owner as the agent responsible for operating such property in compliance with the City’s ordinances and having been authorized by appointment to accept service of process on behalf of the owner pursuant to Rule 4(d)(1) of the South Carolina Rules of Civil Procedure. Packet Pg. 3 1.a Short-term rental (STR) means the use and enjoyment of a dwelling unit, or portion thereof, for a duration of less than 30 consecutive days in exchange for valuable consideration. Hotels, motels, bed and breakfast establishments, and inns are excluded from this definition. SEC. 5-402. SHORT-TERM RENTAL REGULATIONS The following regulations apply to all dwelling units being used as a short-term rental in the City: (a) Determination of Short-Term Rental Offering: Any advertisement for an STR by the owner or responsible local representative is sufficient to determine that a dwelling unit is Attachment: COC STR 12.7.22 (8148 : Proposed Short-Term Rental Ordinance) being offered as a short-term rental. (b) Business License Required: The owner or responsible local representative offering a dwelling unit as a short-term rental shall obtain a business license and comply with all business license and revenue collection laws of the City of Columbia, Richland County, and State of South Carolina. (c) Code Compliance Required: The owner of a permitted STR shall ensure the STR property and dwelling unit is in compliance with all City ordinances at all times, which include, but are not limited to: (1) Animal Control, Chapter 4; (2) Building and Building Regulations, Chapter 5; (3) Environmental Health and Sanitation, Chapter 8; (4) Fire Prevention and Protection, Chapter 9; (5) Unified Development Ordinance, Chapter 17; and (6) Solid Waste Management, Chapter 19. (d) Insurance: The record owner of the subject property must keep in full force and effect, during all times the STR is operated, a general liability policy with a company authorized to do business in the State of South Carolina insuring against personal injury (including death) and property damage with limits of no less than $1,000,000.00 per occurrence. (e) Safety Inspection: A safety inspection to ensure compliance with the regulations in this Article may be performed by the City if deemed necessary and with 24-hour notice to the permit holder. (f) Records Required: The property owner shall maintain the following which shall be made available to the City upon request: (1) For a period of two years, records demonstrating compliance with these provisions, including but not limited to, information demonstrating residency, if required; the number of days per calendar year the residential unit has been Packet Pg. 4 1.a rented as an STR; and compliance with the insurance requirement in this section; and (2) The name and phone number of each short-term guest that booked the STR for the previous two years. (g) Contact: The property owner must be willing to take phone calls at all times to address issues with the short-term rental; or the owner must provide the name, mailing address, and telephone number of a designated responsible local representative who is willing to take phone calls at all times if needed to address issues with the short-term rental use, and who is authorized to accept service of process on behalf of the owner. Attachment: COC STR 12.7.22 (8148 : Proposed Short-Term Rental Ordinance) (h) Permits are non-transferrable: If ownership of a permitted dwelling unit changes, the new owner must obtain a new permit before operating any part of the dwelling unit as an STR. (i) Minimum Guest’s Age: The guest making the booking or reservation for an STR shall be at least twenty-one (21) years of age. (j) Minimum Stay Duration: The short-term rental shall not be available for occupancy for a period of less than one night. (k) Permit Number in Advertisement: Any online advertisement for an STR must include the current STR permit number, as issued by the City, within the description section of the advertisement. (l) House Manual: At a minimum, the following shall be made available to each short- term guest: (1) Emergency contact numbers; (2) The name and contact information for the owner or responsible local representative; (3) Instructions or a diagram of the designated parking space(s); and (4) The house rules imposed on guests by the owner. (m) Parking Spaces Required: One parking space for every two bedrooms in a dwelling unit must be made available and designated on an STR property. Guests must be notified of the parking plan and the maximum number of vehicles allowed on-site, which shall not exceed six vehicles. (n) Maximum Occupancy: The maximum overnight occupancy of an STR shall not exceed two persons per bedroom, plus two additional people per dwelling unit; (o) Identity Verification: The owner or responsible local representative shall be responsible for determining that a guest who booked the STR is in fact a guest occupying the STR. Packet Pg. 5 1.a (p) Neighbor Notification: the owner or responsible local representative of an STR shall notify each household within a 200 foot radius of the STR that the property is being operated as an STR and must provide such households with the address of the STR and the phone number of the owner or responsible local representative. SEC. 5-403. SHORT-TERM RENTAL PERMIT REQUIRED (a) No dwelling unit in the City shall be operated as a short-term rental without a current STR permit issued by the City of Columbia. Permits are to be issued and renewed on an annual basis and will only be issued or renewed to an owner or responsible local representative having his or her place of residence or business office within 45 miles of Attachment: COC STR 12.7.22 (8148 : Proposed Short-Term Rental Ordinance) the short-term rental property. (b) Applications for renewals of STR permits must be submitted by July 1, of each year, except that any holder of a permit issued before July 1, 2023, will have until July 1, 2024, to submit an application for renewal. Beginning in 2024, any application for a permit renewal not submitted by July 31, will result in the loss of the permit. (c) STR permits are non-transferable. A new owner or responsible local representative of a permitted STR shall be required to obtain a new and separate permit for the dwelling unit by submitting a new STR permit application. (d) The permits required by this Article are regulated privileges, not rights, and can be revoked by the City in accordance with the provisions provided in this Article. SEC. 5-404. SHORT-TERM RENTAL PERMIT APPLICATION & FEES (a) An application is required for initial permit issuance and permit renewal and must be submitted on a form provided by the City. A separate application is required for each permit or renewal being sought. The STR application shall contain, at a minimum, the following information: (1) The address of the dwelling unit; (2) The number of bedrooms in the dwelling unit; (3) The names, mailing addresses, and phone numbers, of the owner(s) and any responsible local representative; (4) The address where the owner or responsible local representative will accept notices and orders; (5) An affidavit signed by the property owner certifying the property complies with all fire and building code ordinances; (6) Certification that the owner has read applicable city regulations, including, but not limited to, those found in Section 5-402(c) of this Article; (7) Certification that the owner is aware that penalties may be assessed for violations by guests; and Packet Pg. 6 1.a (8) Copy of general liability insurance. (b) The permit fees shall be paid at the time of application submission. These fees are established by City Council and may be changed from time to time. These fees include the following: (1) A non-refundable application fee of $50; and (2) For an owner-occupied STR, a non-refundable STR permit registration fee of $100.00; or (3) For a non-owner-occupied STR, a non-refundable STR permit registration fee of Attachment: COC STR 12.7.22 (8148 : Proposed Short-Term Rental Ordinance) $250.00 per dwelling unit. (4) Any permit renewal application and associated fees submitted after July 1, will incur a late fee of $100. (c) An STR permit holder shall notify the City of any changes to the information submitted in the application within 30 days after any such change occurs. SEC. 5-405. CRITERIA FOR PERMIT ISSUANCE (a) Unless otherwise provided for by this Article, the City shall issue an STR permit, within 30 days from application submission, to an applicant if the following criteria are met: (1) The City has determined that the STR application is complete and all permit fees have been paid; (2) The dwelling unit listed in the application has either passed a safety inspection or has been certified by the applicant that the dwelling unit complies with all applicable fire and building codes; (3) The City has determined that all requirements of this Article are satisfied; and (4) Issuance of the permit will not violate any other provision of this Article. SEC. 5-406. PERMIT CAP FOR RESIDENTIAL DISTRICTS (a) There shall be a cap imposed on the number of STR permits issued for non-owner occupied short-term rentals located in a residential district. The numerical cap amount shall be equivalent to the number of permits issued for non-owner occupied short-term rentals located in a residential district on the 90th day after passage of this ordinance. Unless otherwise provided for by this Article, no permit may be issued for a non-owner occupied short-term rental in a residential district if such issuance would exceed this cap. (b) Any potential applicant seeking a permit for a short-term rental in a residential district, but that is unable to receive the permit due to the cap will be placed on a waiting list maintained by the City. A permit application is not required for placement on the waiting list. As permits become available, the City will notify the potential applicant Packet Pg. 7 1.a having been placed on the waiting list for the longest amount of time and any such potential applicant will have 10 days to submit a permit application. If no such application is submitted within 10 days of the notification, the potential applicant will be removed from the waiting list and the next potential applicant on the list will be notified and provided the same opportunity to submit an application. SEC. 5-407. SHORT-TERM RENTAL PERMIT EQUIVALENCY (a) An STR permit issued pursuant to this Article shall be considered the equivalent of a rental permit for the purposes of Section 5-326. A holder of a current and valid STR permit may rent the dwelling unit for periods of 30 days or greater without obtaining a Attachment: COC STR 12.7.22 (8148 : Proposed Short-Term Rental Ordinance) separate rental permit as required under Section 5-326 so long as all requirements of Chapter 5, Article VIII are satisfied. SEC. 5-408. VIOLATIONS (a) STR owners are ultimately responsible for the conduct of their occupants and guests, regardless of whether the owners are present at the dwelling unit. Violations include, but are not limited to: (1) Intentionally providing false or inaccurate information about a dwelling unit or short-term rental to the City; (2) Failure to have a valid STR permit for any dwelling unit at a time when it is used in whole or in part as a short-term rental; (3) Violation of any part of this article; (4) Violation of any City or Richland County ordinance or state law by owners, responsible local representatives, operators, lessors, agents, occupants, or guests of short-term rentals including, but not limited to, violations of ordinances and laws concerning excessive noise, disorderly conduct, littering, underage drinking, drug offenses, public drunkenness, traffic and parking, and all other criminal and nuisance offenses. (b) In the event a violation takes place at an STR regulated by this article, such violation shall be grounds for the accumulation of points as follows: (1) For one or more written warnings given in any 24-hour period for one or more of the violations listed above, points will be assessed on the permit for that STR in accordance with following: a. First violation. One point will be assessed for the first occurrence of a violation. b. Second violation and each violation thereafter. Five points will be assessed for a second occurrence and each occurrence thereafter of a violation within the same permit year. Packet Pg. 8 1.a (c) The first violation at an STR regulated by this article, shall incur a penalty of $100. The second violation at an STR regulated by this article, and each violation thereafter, shall incur a penalty of $500. SEC. 5-408. REVOCATION OF PERMIT (a) Accumulation of 10 or more points on a STR permit within a 12 month period shall subject the owner to proceedings to revoke the permit and the following procedure shall be followed: (1) The police chief or designee shall cause to be served written notice to show cause why Attachment: COC STR 12.7.22 (8148 : Proposed Short-Term Rental Ordinance) the permit should not be revoked. Service shall be deemed complete if personally delivered upon the owner or responsible local representative by any officer authorized by law to serve process or a duly appointed law enforcement officer of the city police department. The person serving process shall make proof of service within the time during which the person served must respond to the process. If service cannot be personally made within the city, then service may be made by notice posted on the property and mailed certified return receipt to the last known address of record. (2) The owner or responsible local representative shall have 15 days from the date of service to request a hearing to appeal the revocation of the permit. The request shall be sent to the police chief by certified mail, return receipt requested. If such request is not timely made, the revocation shall take effect on the 21st day after the date of service to show cause. (3) Upon request for a hearing, the police chief or designee is authorized to schedule the appeal with the property maintenance board of appeals (PMBoA) at the next regularly scheduled meeting or special called meeting by the board. (4) Once the hearing is scheduled, the property should be posted to announce the hearing date to the general public. (5) In conducting the hearing, the PMBoA shall have the power to administer oaths, issue subpoenas, compel the production of books, paper, and other documents, and receive evidence. All parties shall have an opportunity to respond, to present evidence and argument on all issues involved, to conduct cross-examination and submit rebuttal evidence, to submit proposed findings of facts and orders, to file exceptions to the PMBoA's recommended order, and to be represented by counsel or other qualified representative. Hearsay evidence may be used for the purpose of supplementing or explaining other evidence, but it shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. The lack of actual knowledge of, acquiescence to, participation in, or responsibility for, a public nuisance at common law or a noxious use of private property on the part of the owner or responsible local representative shall not be a defense by such owner or responsible local representative. (6) If the PMBoA finds that the violations resulting in the accumulation of 10 or more points did in fact occur and that 10 or more points have accumulated on the permit within a 12- month period, then PMBoA shall prepare a recommended order. Packet Pg. 9 1.a (7) If the PMBoA finds 10 or more points have not accumulated on the permit within a 12- month period, the PMBoA will prepare a recommended order to dismiss the revocation action and recommend which points, if any, should be rescinded from the permit based upon the actions taken by the owner to seek compliance with the City's ordinances. (8) The PMBoA's recommended order shall consist of findings of fact, conclusions of law and recommended relief. The police chief or designee shall transmit the recommended order to the city manager and the owner or responsible local representative. The owner or responsible local representative shall have 15 days from the date of the hearing officer's order to submit written exceptions to the PMBoA's recommended order. The city Attachment: COC STR 12.7.22 (8148 : Proposed Short-Term Rental Ordinance) manager shall review such order and any written exceptions by the owner and may set forth any deficiencies he/she finds with respect to the order. Said deficiencies shall be limited to determinations that the findings were not based upon competent, substantial evidence, or that the proceedings on which the findings were based did not comply with the essential requirements of law. In reviewing such recommended order, the city manager shall not have the power to receive or consider additional evidence and shall not have the power to reject or modify the findings of fact or conclusions of law contained in the recommended order. The city manager may remand the recommended order along with the delineated deficiencies back to the PMBoA for consideration of the deficiencies. The PMBoA shall address the deficiencies in an addendum to the recommended order. The city manager shall then either: (a) adopt the recommended order and addendum, if applicable, in its entirety; or (b) adopt the findings of fact and conclusions of law in the recommended order and addendum, if applicable, and reject or modify the recommended relief. The action of the city manager shall be the final order of the city. (9) The city manager or designee shall provide notice of the final order within five days of the date of the final order. (10) In addition to the above-described procedures, the city attorney is authorized to file for injunctive relief to abate the public nuisance at common law or noxious use of private property pursuant to law. (11) The final order of the city is subject to certiorari review in a court of competent jurisdiction in Richland or Lexington County, South Carolina. SEC. 5-409. PERMIT APPLICATION AFTER REVOCATION (a) Upon revocation of an STR permit of a dwelling unit, the owner or responsible local representative of the dwelling unit will not be eligible to apply for a new permit until six months have passed from the date of revocation. The City shall not issue an STR permit for a dwelling unit that has been subject to a permit revocation more than once. SECTION 3. Severability. Should any part or provision of this Ordinance be declared unconstitutional or invalid by a court of competent jurisdiction, such decision shall not affect the constitutionality or validity of the remaining portions of this Ordinance, the city council hereby declaring that it would have passed Packet Pg. 10 1.a this Ordinance irrespective of the fact that any one or more parts or provisions may be declared to be unconstitutional, invalid, or otherwise ineffective. Attachment: COC STR 12.7.22 (8148 : Proposed Short-Term Rental Ordinance) Packet Pg. 11